Farm consolidation relief has been extended by a further two years until December 2022.
Stamp duty is usually charged at a 7.5% rate on land transfers, but the relief reduces the rate to 1% where farmers can show that they are buying and selling land to consolidate their farm enterprises.
While the relief is not as widely used as consanguinity or the young trained farmer relief, some 85 farmers successfully claimed the relief last year, saving themselves €630,000 collectively.
For the relief to operate, the sale and subsequent purchase of farmland must happen within a 24-month period.
A farm restructuring certificate must also be provided from Teagasc, plus farmers must abide by a number of additional conditions including:
Macra na Feirme president Thomas Duffy said the decision provided much needed certainty around land transfers.
“There was real concern amongst young farmers that there would be an age limit, effective from the first of January, putting an unhealthy pressure on farms to make arrangements for hand over.”